You might be able to find a super lightweight desktop distro out there (I think Damn Small Linux can run on those specs?) or you could repurpose it as a basic server of some sort like you mentioned. Unless you wanted to invest in some cheap old ram to throw in there and maybe make it a bit faster, then I think those would be your best options.
He want's to do the same thing he did with the Teslas that spell S3XY. He's going to buy Facebook and call it S, Reddit and call it 3, and LinkedIn and call it Y.